Reckitt Benckiser reported a 2% increase in like-for-like revenue in the first quarter

A strong cold and flu season helped sales in North America

Reckitt Benckiser Group PLC (LON:RB.) said on Friday it is on track to return to full year revenue growth after a solid first quarter but shares fell as the results missed analysts' expectations.

The consumer goods giant reported a 2% like-for-like increase in first quarter revenue to £3.1bn. Analysts were on average expecting like-for-like revenue growth of 2.6%, according to the company-supplied consensus.

Shares dropped 4.3% to 5,534p in morning trading.

Consumer goods companies have struggled to raise prices due to pressure from large retailers and tough competition from the likes of drug store chains and Amazon (NASDAQ:AMZN).

Like-for-like revenue in the hygiene home business achieved increased 4%, driven by Lysol in the US and the sell-in of new products under the Finish and Airwick brands.

In terms of geography, North America was the star performer with like-for-like revenue growth of 6%, thanks to a strong cold and flu season.

Russia and Middle East continued to be weighed down by challenging market conditions while poor sales of Scholl dragged on revenues in Europe.

Reckitt repeats full year guidance

Reckitt said it is on track to reach its full year target for total revenue growth of 13% to 14% and an increase in like-for-like revenue of 2% to 3%. That follows flat revenues in the previous year.

However, the company warned that it may incur liabilities related to an investigation by the US Department of Justice and the US Federal Trade Commission into the RB Pharmaceuticals heroin addiction drug business before Reckitt demerged the business and renamed it Indivior.

South Korea disinfectant deaths

Reckitt also apologised again for the deaths of 96 people in South Korea caused by its humidifier disinfectant. The group said 30 asthma victims have been announced by the Ministry of Environment.

"We continue to make both public and personal apologies to victims," Reckitt said.

"Since our fiscal year 2017 results publication, no material updates have occurred apart from further categorisation of applicants."

In 2016, the company removed the disinfectant made by its Korean Oxy unit in 2011 after a government investigation suggested a link between lung damage and humidifier disinfectants.

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